Zynga & Facebook: It’s Complicated
The game company is attempting to reduce its reliance on Facebook-driven traffic.
Zynga, the online-gaming company that began public trading in December, is trying to lessen the company’s reliance on Facebook, Bloomberg Businessweek reports.
A new publishing program due in March will allow other game developers to advertise their games in Zynga titles as well as on a separate Web portal, two sources told Businessweek; Zynga would keep a share of sales revenue from the games.
Zynga is the biggest developer of games played on Facebook, but is seeking new revenue streams after its $1 billion IPO. The move will help Zynga reduce its dependence on Facebook-driven revenue, which currently accounts for more than 90 percent of Zynga’s sales. Facebook receives 30 percent of all virtual goods sold in Zynga games.
“By becoming a publisher, Zynga emulates traditional console game companies such as Electronic Arts Inc., which distribute and promote games made by independent design studios in exchange for a cut of sales,” Businessweek explains. –John McDermott
Photo via Loic Le Meur.